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Basic Question 14 of 15
Under IFRS, if a revaluation initially increases an asset's carrying value by $2,000, and in a subsequent period the asset's carrying value is decreased by $5,000, ______
B. the $2,000 is recognized as a profit and the $3,000 is recognized as a loss.
C. both $2,000 and $5,000 go to equity directly.
A. the $2,000 increase goes to equity first. In the subsequent period the $2,000 decrease goes to equity and the remaining $3,000 is recognized as a loss.
B. the $2,000 is recognized as a profit and the $3,000 is recognized as a loss.
C. both $2,000 and $5,000 go to equity directly.
User Contributed Comments 1
| User | Comment |
|---|---|
| cong | Once revaluation surplus account is depleted, loss results. |
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Craig Baugh
Learning Outcome Statements
explain and evaluate how impairment and derecognition of property, plant, and equipment and intangible assets affect the financial statements and ratios
CFA® 2025 Level I Curriculum, Volume 2, Module 7.